During the year, law firms make changes to their growth plans reactively based on incoming work and strategically with calculated risks based on business/market demands and client information. This year will see a blend of innovation, technological advancements, and strategic growth in key practice areas. Several practice areas that we foresee significant growth in 2025 are construction, planning and property development. Various socio-economic factors are behind this and below I have explained my thinking.
Construction Law
The demand for construction law services is expected to rise due to an increase in infrastructure projects and urban development initiatives. Local authorities are keen on rejuvenating town and city centres, and improving office offerings, which will result in significant construction projects. Statistics published towards the end of last year include how the City of London’s office letting figures are rising fast, while Swansea’s city centre has excelled in growth and now has the lowest % of office vacancies across the UK at 3.5%. Experts are predicting investors in key regional markets such as Bristol, Cambridge, Edinburgh, Oxford and Manchester are also anticipated to experience annual gains of about 7 per cent with a predicted increase in demand for sustainable/flexible/coworking spaces. On top of this, recent reports have indicated that overall the construction industry is projected to grow by 4.5% annually through 2025.
Planning Law
With the push for urban renewal, planning law will become crucial. Local governments are focusing on creating shared living and mixed-use units to revitalise urban areas. This trend is driven by the need for sustainable and efficient urban planning. In the last few months alone, co-living housing projects have been announced in Bristol, Reading, Newcastle and various London Boroughs. The global urban planning market is expected to continue growing at a CAGR of 6.2% through 2025.
Property Development
The property development sector is set to grow, fuelled by the increasing demand for all types of housing. The Labour government has of course announced an ambitious plan to build 1.5 million new homes across the UK within the next five years to start to address the country’s housing shortage and to rejuvenate cities and towns, as well as enhancing infrastructure. Their plans include reinstating compulsory housebuilding targets for local councils and creating new development corporations to accelerate construction.
Universities and private developers are investing in new housing projects to accommodate the growing student population. The student housing market alone is projected to reach $120 billion by 2025, growing at a rate of 5.8% annually. In the last few months Mansfield District Council, Bradford Council, Oxford City Council, Moray Council and several London boroughs have approved plans for units that include a mix and match of residential, educational, industrial, office and retail units to increase convenience and accessibility, encourage economic growth and sustainability. All these types of developments are producing a very steady increase in work for the law firms with the right skills and expertise.
In summary, we feel the legal market in 2025 presents significant growth opportunities for law firms, particularly in the areas of construction law, planning law, and property development. The firms that proactively invest in these practice areas will be well-equipped to meet evolving client needs and capitalise on market trends. By staying adaptable and forward-thinking, these firms can navigate the dynamic property landscape and continue to grow.
To discuss the market in more detail, including opportunities and recruitment strategies, do contact Liam Andrews, Consultant - South East team:
(M) 07921 895 776
(E) liamandrews@chadwcknott.co.uk
